What are risk or death life insurance
A risk or death life insurance is characterized by insuring capital or property in the event that the insured dies. If the insured dies before the end of the contract, the beneficiaries previously designated in the contract are guaranteed financial compensation according to the amount stipulated and agreed between the insurance company and the insured.
If, on the contrary, when the policy expires, the insured has not yet disappeared, no economic benefit will be delivered. In other words, this type of policy is for a stipulated time; in most cases they are annual and you must comply with a series of clauses to be able to request compensation if you have it.
Many policies add other types of supplementary guarantees such as those we have already seen:
Disability: the insured is covered not only for death but also for the risk of suffering some type of disability or incapacity.
Accidents: the additional guarantee is not in the cause, but in the economic benefits. An additional capital is usually provided in the event that the death is not due to natural causes but is the consequence of any type of accident.
Survival insurance, do you know which child?
Survival insurance or savings insurance guarantee the insured or the beneficiaries stipulated in the contract, the collection of the agreed benefit. This type of insurance is a good acquisition both for savings and for forecasting with different specialties:
Insured pension: plans are individual insurance contracts whose legal and tax regime is assimilated to pension plans
Systematic individual savings plans are long-term individual savings insurance in which the contracting party receives a capital or an annual life annuity if they live to a certain age established in the contract.
Life annuities: The insured is guaranteed the amount of an annuity for all the years of his life. It can be combined with additional benefits in the event of death or even return of contributions.
This point is related to mixed insurance in which both contingencies are guaranteed, by a bond the payment of a benefit to the beneficiaries upon the death of the insured but also at the expiration of the insurance if the insured lives on that date.
Whatever policy you choose, insurance will always be useful and of great help in the event of any health contingency or eventuality, emergencies, among others.